JWD, a leading fully integrated in-land logistics service provider, posted a Q4/16 net profit of THB 43 million, a significant q-o-q recovery, driven by healthy growths in the hazardous cargo storage and management, automobile and parts and cold storage warehousing segments, and declared a dividend payment to the shareholders at THB 0.08 per share. The management believed the business has bottomed out, and expected the company to record a total revenue growth rate of at least 7% in 2017 due to the rising demand for cold storage warehousing space for seafood and poultry products and the recognition of revenue from the supply of automotive parts logistics services to Siam Motor Industries’ plants.
Dr Eakapong Tungsrisanguan, Chief Financial Officer (CFO) of JWD Infologistics Public Company Limited (JWD), a leading fully integrated in-land logistics service provider, revealed the company’s operating results of Q4/16 (Oct-Dec’16), highlighting the net profit figure of THB 43 million, a strong recovery after the company posted a net loss of THB 105.1 million in Q3/16 due to the recording of onetime provisions for contingent liabilities and two extraordinary items in late 2016. He also noted a total revenue figure of THB 558 million, virtually unchanged from Q3/16.
The improved net results for Q4/16 were achieved thanks to healthy growths in the cargo storage and management business. Revenue from the hazardous cargo segment grew around 11% as the volumes of hazardous cargo containers entering and leaving Laem Chabang port, Chon Buri, rose sharply at yearend. The cold- and frozen-storage segment grew more than 11% due to a greater demand for warehouse space for seafood products, especially tuna, in December 2016 (the demand is forecasted to grow further in 2017). The automobile and parts segment grew 8%, in line with the automotive industry’s recovery and the higher car production outputs.
For 2016, JWD’s total revenue stood at THB 2.251 billion, on par with the 2015 figure, driven principally by an astonishing 22% growth in the automobile and parts storage and management segment as propelled by on-site services to Nissan Group and growths in export car production. As for net profit, without the provisions for contingent liabilities and the two extraordinary items, the figure would stand at THB 122 million.
Given the group’s ability to remain profitable despite the slowdown in 2016, JWD’s board resolved on 23 February 2017 to declare dividends for the 2016 results to the shareholders at THB 0.08 per share. The book closing date will be 12 May 2017 and the payment date 26 May 2017.
Mr Charvanin Bunditkitsada, JWD’s Chairman of the Executive Committee and Chief Executive Officer (CEO), added that JWD’s Q4/16 performances indicated that the company’s business has bottomed out. He forecasted a total revenue growth of at least 7% for 2017, which would move the organisation strongly forward, as the cold storage segment has picked up due to a rising demand for rental space for seafood and poultry products in December 2016 and early 2017.
The company’s automobile and parts storage and management segment is benefiting from the commencement of logistics service for automotive parts manufacturing plants of Siam Motors Industries Co Ltd through Siam JWD Logistics Co Ltd, a joint-venture firm formed by Siam Motors Industries Co Ltd and JWD. The undertaking is expected to generate revenue starting April 2017. In the first phase, two of the approximately 70 Siam Motors Industries plants would be served. Revenue from this service is predicted to reach THB 50 million this yearend and grow every year due to expansion of service areas to the remaining plants.
JWD will also earn revenue from the recent investments, including (without limitation) the warehouses in Laos, Myanmar and Cambodia that have begun commercial operation with an aggregate 9,400sq m warehousing space, the cross border transport business run in partnership with Srithai Group and the JWD Chemical Supply Chain (or JCS) centre. It stands to achieve more efficient control of operating costs and expenses, as investment advisor’s fees and provisions for contingent liabilities have been recognised and made for Q2/16 and Q3/16.
“We see robust growths coming this year. There are several signs of recovery and growth for our core businesses. The overall logistics service business will likely be influenced by positive factors, including a forecasted 3% GDP growth rate as a result of a flourishing economy in Thailand’s border provinces. The automobile manufacturing industry is expected to record a stronger growth rate this year. And the proliferation of e-commerce businesses and the booming economies in the CLMV markets will directly and indirectly stimulate the demand for logistics services,” said he.